BILL NUMBER: AJR 23	CHAPTERED  09/01/99

	RESOLUTION CHAPTER   91
	FILED WITH SECRETARY OF STATE   SEPTEMBER 1, 1999
	ADOPTED IN ASSEMBLY   AUGUST 26, 1999
	ADOPTED IN SENATE   AUGUST 23, 1999
	AMENDED IN SENATE   AUGUST 23, 1999
	AMENDED IN ASSEMBLY   JULY 15, 1999
	AMENDED IN ASSEMBLY   JULY 14, 1999

INTRODUCED BY   Assembly Members Runner and Knox
   (Coauthors:  Assembly Members Wildman, Aanestad, Ackerman,
Alquist, Aroner, Ashburn, Baldwin, Bates, Battin, Baugh, Bock,
Brewer, Briggs, Calderon, Campbell, Cardenas, Cardoza, Cedillo,
Corbett, Correa, Cox, Cunneen, Davis, Dickerson, Ducheny, Dutra,
Firebaugh, Frusetta, Gallegos, Granlund, Havice, Hertzberg, Honda,
Jackson, Kaloogian, Keeley, Kuehl, Leach, Leonard, Longville,
Lowenthal, Machado, Maddox, Maldonado, Margett, Mazzoni, McClintock,
Migden, Nakano, Olberg, Oller, Robert Pacheco, Rod Pacheco, Pescetti,
Reyes, Romero, Scott, Shelley, Soto, Steinberg, Strickland,
Strom-Martin, Thompson, Thomson, Torlakson, Villaraigosa, Vincent,
Washington, Wayne, Wesson, and Zettel)
   (Coauthors:  Senators Baca, Karnette, Schiff, and Solis)

                        MAY 25, 1999

   Assembly Joint Resolution No. 23--Relative to the California film
industry.



	LEGISLATIVE COUNSEL'S DIGEST


   AJR 23, Runner.  California film industry.
   This measure would memorialize the President and the Congress of
the United States to evaluate the relocation of film industry
business to Canada and other foreign nations and to initiate
trade-related legislation that would persuade the film industry to
remain in California.




   WHEREAS, The film industry is a major contributor to the
California economy.  It was one of the main drivers of the California
comeback as the state recovered from the protracted recession of
1991, however, other countries aggressively promote incentives for
filming outside of California.  This competition translates into a
significant share of tax revenue that is not directed to California.
According to published estimates by the Motion Picture Association
of America (MPAA), every one percent of entertainment jobs in
California represents about $9 million in state tax revenue; and
   WHEREAS, The MPAA also notes that most forecasts predict that the
demand for motion picture, television, and commercial products will
increase.  The issue is whether the future economic activity that
this growth may generate will occur in California or elsewhere; and
   WHEREAS, The film industry has a significant effect on other
industries, including the multimedia industry, tourism, toys, games,
and industries that perpetuate the "California look" in apparel and
furniture manufacturing.  This is part of the residual effect of the
film industry; and
   WHEREAS, The enormity of the film industry makes it an important
contributor of tax revenue to this state; and
   WHEREAS, While there is an abundance of available labor in the
film industry in the Los Angeles region, many below-the-line union
workers are currently unemployed; and
   WHEREAS, Canada is enticing entertainment industry jobs out of
this country by offering significant tax credits to United States
production companies.  This practice is resulting in less work for
American film crews as more and more movies, TV series, sitcoms,
mini-series, etc. are being relocated there; and
   WHEREAS, A continued exodus of motion picture and television
production to foreign countries such as Canada will not only
eliminate thousands of well-paying jobs, it will mean the United
States will lose a growing and very lucrative industry that it
created; now, therefore, be it
   Resolved by the Assembly and Senate of the State of California,
jointly, That the Legislature respectfully memorializes the President
and the Congress of the United States to evaluate the problems
caused by relocating film industry business to Canada and other
foreign nations, to evaluate the current state and federal tax
incentives provided to the film industry, and to promote
trade-related legislation that will persuade the film industry to
remain in California; and be it further
   Resolved, That the Chief Clerk of the Assembly transmit copies of
this resolution to the President and Vice President of the United
States, to the Speaker of the House of Representatives, to the
Majority Leader of the Senate of the United States, and to each
Senator and Representative from California in the Congress of the
United States.
